The eligibility requirements for SBA 504 loans for preschools and daycare centers are as follows:

• The business must be a for-profit, small business as defined by the SBA.
• The business must occupy at least 51% of the project and must use the loan proceeds for the acquisition, construction, or renovation of a commercial property.
• The business must create or retain at least one job for every $65,000 of SBA 504 loan funds.
• The business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the preceding two years.

For more information, please visit SBA 504 Loans for Preschools and Daycare Centers and Eligible and Ineligible Industries for SBA 7(a) Loans.

SBA 504 loans can be used to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit your purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more.

SBA 504 loans can also be used to fund day care centers and preschools. However, the funds cannot be used for working capital, so supplementing with another business loan may be necessary.

For more information on SBA 504 loans, please visit https://sba504.loans.

The SBA 504 loan is intended for the purchase or construction of owner-occupied commercial real estate. It has a maximum loan amount of $5.5 million and can be used to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit your purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more. Funds cannot be used for working capital.

The SBA 504 loan has a fixed interest rate and a 10-20 year term. The loan is typically structured with a 50% loan-to-value (LTV) ratio, with the other 50% coming from a conventional lender. The SBA 504 loan also requires a 10% down payment from the borrower.

For more information on SBA 504 loans, please visit https://sba504.loans.

Preschools and daycare centers can apply for SBA 504 loans to fund the purchase of real estate, as well as the purchase or construction of buildings, and the retrofitting of existing buildings to suit their purpose. These loans can also give you the funding necessary to invest in important equipment, such as playground equipment, food service equipment, classroom equipment like tables and chairs, and more. However, the funds cannot be used for working capital, so supplementing with another business loan may be necessary.

For more information on SBA Express loans, which can be used for a variety of purposes, including funding working capital, purchasing equipment, and purchasing owner-occupied commercial real estate, please visit www.sbaexpress.loans/blog/preschool-and-daycare-loans.

When applying for a 504 loan, you’ll need to provide the CDC and your lender with a very wide range of documentation. We have included the most commonly required documents below:

• Business tax returns for the previous three years
• Personal tax returns for the previous three years
• Personal history statement
• Personal financial statement
• Personal budget analysis
• Business financial statements for the previous three years
• Business debt schedule
• If you are applying for a loan for a hotel or motel, you will need:
  • Revenue and expenses breakdown for the past year (month to month)
  • Occupancy percentage and average daily rate information for the previous year (month to month)
  • Occupancy percentage and average daily rate for the area
  • Your hotel projection worksheet
• Interim financial statement (signed and dated, and including balance sheet and income statement dated within the previous two months)
• Accounts receivable aging (dated within the previous two months)
• Accounts payable aging (dated within the previous two months)
• Complete business plan
• One year of financial projections with assumptions
• Purchase agreement
• Written estimate from a contractor if the loan is for construction
• If this is a franchise, you will need a letter of intent from the franchisor and a FUOC and franchise agreement
• If you are buying another business, also include:
  • The business owner’s tax returns for the previous three years
  • Interim finance statement dated within the last 60 days
  • Signed purchase agreement with cost breakdown, amendments, etc.
• If you are using gift funds, you will need to provide a gift letter
• Previous government financing schedule
• Environmental impact questionnaire
• Application certification an authorization
• Documents pertaining to the ownership of other businesses and their finances (if applicable)
• Copy of loan agreement and SBA authorization if you have another SBA loan
• If you are refinancing a loan, you will need:
  • Copy of the original debt documentation
  • Your original purchase agreement, including settlement sheet,

For more information, please visit https://sba504.loans/application-checklist.